(1) The value of any security held by a secured creditor shall be determined in one of the following ways, as the court may direct:
By converting the same into money according to the terms of the agreement pursuantto which the security was delivered to such creditor; or
By agreement, arbitration, compromise, or litigation between the creditor and theliquidator.
(2) The determination shall be under the supervision and control of the court with due regard for the recommendation of the liquidator. The amount so determined shall be credited upon the secured claim, and any deficiency shall be treated as an unsecured claim. If the claimant surrenders the security to the liquidator, the entire claim shall be allowed as if unsecured.
Source: L. 92: Entire part R&RE, p. 1474, § 14, effective July 1.